The development of quarterly industry level CP GVA estimates is an extension of what is currently produced for the annual publication, Australian System of National Accounts (ASNA) (cat. no. 5204.0). Quarterly indicators for COE, GOS, GMI, Taxes and subsidies by industry are estimated using the data sources listed. These are then benchmarked to the annual estimates from the SUT. The method of benchmarking uses a combination of the Denton difference method and the Denton proportion method to allocate the annual estimate to each of the quarters of a financial year and to extrapolate forward for the quarters of the latest year. For more information about benchmarking procedures refer to Australian System of National Accounts: Concepts, Sources and Methods, Australia (cat. no. 5216.0).
The compilation methodologies for each of the components of CP GVA are outlined below:
COMPENSATION OF EMPLOYEES (COE)
GROSS OPERATING SURPLUS/MIXED INCOME (GOSMI)
- The public and private sector contribution to wages and salaries for each industry is determined using information from the 2010-11 Labour costs survey (cat. no. 6348.0), that provides the public and private sector split of employees classified by industry.
- For industries where there is no public sector contribution to total earnings, the industry level wages indicator from QBIS is applied to the annual COE by industry estimates from the Australian System of National Accounts (ASNA) (cat. no. 5204.0) to produce the quarterly estimates using the benchmarking procedure. Examples of industries where there is no public sector contribution include Mining, Manufacturing and Retail trade.
- For industries where there is a public sector contribution to total earnings, a combination of indicator series is used to produce the quarterly estimates. These are the wages by industry indicators from QBIS and total public sector wages and salaries from GFS. These indicator series are applied to the annual estimates based on their relative public/private sector contribution. Industries where a combination of indicators are required include Electricity, gas, water and waste services, Transport, postal and warehousing, Education and training, Healthcare and social assistance and Arts and recreation services.
- For Public administration and safety, there are no specific private sector indicators available so the total private sector wages from QBIS is used as the indicator for this component. Total wages and salaries from GFS is used as the indicator for the public sector component.
- Estimates from ABARES are used as the indicator for the Agriculture, forestry and fishing industry.
GOSMI for each industry is constructed by adding together the GOSMI for the following institutional sectors:
Private non-financial corporations
Public non-financial corporations
- Private non-financial corporations (PrNFC) GOS industry estimates are primarily obtained by applying the CGOP indicator for corporations from QBIS to the annual benchmark to generate quarterly estimates.
- Agriculture, forestry and fishing industry estimates, which are out of scope of the QBIS sample, are generated based on information sourced from ABARES.
- For other industries that are out of scope of the QBIS sample, such as Public administration and safety, a linear trend interpolation is applied to the annual estimates to generate quarterly private GOS series.
- Public non-financial corporations (PNFC) GOS industry quarterly estimates are obtained by benchmarking GFS indicator series to the annual estimates. This indicator is based on quarterly income and expenditure by industry data for PNFC’s.
- Financial corporations sector GOS is currently published as part of the Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0) in the Financial corporations income accounts. As part of developing these experimental estimates, an assumption is made that the financial corporations sector is equal to the Financial and insurance industry. There are some cases where this assumption does not hold, for example, the Reserve Bank of Australia is part of the financial corporations sector but is part of the Public administration and safety industry within the Australian and New Zealand standard industrial classification (ANZSIC), however this treatment has been adopted to ensure that the Financial sector and industry align. These scope differences are expected to have only a small impact on the overall results.
- General government GOS is equivalent to the value of Consumption of fixed capital on General government assets. On an annual basis, General government Consumption of fixed capital by industry estimates are produced using the Perpetual inventory model (PIM). A linear trend interpolation is applied to these annual estimates to obtain the quarterly estimates.
TAXES/SUBSIDIES ON PRODUCTION
- GMI is the income earned from production by unincorporated enterprises. Quarterly estimates of GMI for most industries are obtained by applying the UGOP indicator to the annual estimates using the benchmarking procedure.
- There are some industries where other indicator series are used. For example, for Construction, the “Value of construction work done” estimates from the Building Activity, Australia (cat. no. 8752.0) are used as the indicator series to produce the quarterly estimates. While for the Health care and social assistance industry, movements in household final consumption expenditure on doctors and dentists is used as an indicator for the quarterly estimates.
- Estimates for the Agriculture, forestry and fishing industry are generated using information sourced from ABARES.
- A quarterly indicator series for each industry is constructed by breaking down known taxes and subsidies on production. Total taxes and subsidies are sourced from quarterly GFS data, while the sources of the industry breakdowns are from GFS data, the Labour costs survey, the NSW Office of State Revenue, motor vehicle capital stock data and the proportion of residential land to the total value of land.
- Known taxes on production are those taxes for which quarterly estimates are available. These include payroll taxes, taxes on capital and financial transactions, motor vehicle taxes, land taxes and municipal rates, carbon tax and the surrender of Renewable Energy Certificates from energy generators.
- Each indicator series is applied to the annual estimates for all industries using the benchmarking procedure to produce the quarterly estimates.